Shrnutí: Every self-employed person must first and foremost account for income tax and health and social security contributions. Depending on the nature of their business, they may also have obligations related to VAT or other taxes. In addition, the amounts of certain advance payments changed in 2026. We’ll advise you on what taxes a self-employed person pays, how to calculate them, and which deadlines to keep in mind.
What are the tax obligations of a self-employed person in 2026?
Not sure which obligations apply to your business? We’ll help you navigate the legal obligations of a business owner and avoid unnecessary complications.
A sole proprietor’s tax obligations depend primarily on the amount of their income, the type of business activity, and how they claim expenses. There is also a difference between operating a business as a primary and secondary activity.
Unlike employees, self-employed individuals are generally responsible for calculating and paying their own taxes. They must therefore keep track not only of their income but also of the deadlines for filing tax returns and reports with insurance providers.
The basic rules are set forth primarily by the Income Tax Act, the Tax Code, and regulations governing health and social insurance.
The tax base is generally the difference between income and tax-deductible expenses. In 2026, a 15% tax rate applies. The portion of the tax base exceeding 1,762,812 CZK is subject to a 23% rate.
A self-employed person can reduce their tax base by claiming expenses. The law allows for two main options:
The flat-rate amount depends on the type of activity. Trades can use 80%, other businesses generally 60%, and certain other self-employed activities 40%. The application of flat rates is subject to statutory financial limits.
Among the most important obligations of a self-employed person toward the tax office are maintaining the necessary records, filing tax returns, and paying taxes on time.
Starting in 2024, self-employed individuals starting their business will not be required to register separately for personal income tax. However, this does not mean they have no other tax obligations.
The tax return for 2025 could be filed:
Any tax due must be paid by the deadline applicable to the specific return.
Tip: If you have a data box made available to you by law as a self-employed individual, the relevant tax return forms must be filed electronically.
An error on your tax return, confusion regarding VAT, or a notice from the tax office can cost you both time and money. Our attorneys specializing in tax law will assess your situation, point out potential risks, and recommend a safe course of action. We’ll help you avoid unnecessary penalties and resolve any problems that have already arisen.
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In addition to income tax, self-employed individuals must also pay insurance premiums. Although these are not taxes in the strict sense, they represent a significant portion of business expenses.
Health insurance amounts to 13.5% of the assessment base, which for self-employed individuals is generally half of the tax base.
The minimum monthly advance payment for a primary business activity in 2026 is 3,306 CZK. However, some entrepreneurs—such as certain self-employed individuals engaged in a secondary business activity—are not required to pay the minimum advance payments.
Social insurance is generally calculated based on 55% of the tax base. The insurance contribution rate is 29.2% of the assessment base.
As of July 2026, the standard minimum advance payment for a primary business activity is 5,005 CZK. New entrepreneurs may take advantage of a lower minimum or a statutory exemption from paying advance payments during the first two calendar years.
Note: Exemption from paying advance payments does not automatically mean exemption from the insurance premium itself. This is settled after filing the annual statement.
Value-added tax does not automatically apply to every self-employed person. The obligation to register depends primarily on the turnover achieved and the nature of the transactions carried out.
Starting in 2025, turnover will be tracked on a calendar-year basis. Once turnover exceeds 2 million CZK, VAT payer status generally takes effect the following year, unless the business owner opts for earlier registration. Exceeding 2,536,500 CZK may result in VAT liability beginning as early as the following day.
In such cases, the application must generally be filed within 10 business days.
The standard VAT rate is 21%; the reduced rate is 12%. VAT taxpayers are generally required to file VAT returns and, where applicable, control statements.
Practical Note: VAT obligations may arise even for entrepreneurs with low turnover, for example, when purchasing certain services from abroad. In such cases, registration as an identified person may be required.
The flat-rate tax allows certain business owners to combine income tax, social security, and health insurance into a single monthly payment.
Entrepreneurs are classified into three brackets according to statutory conditions. The decisive factors are primarily the amount of income and the type of business activity.
The main advantage is simpler administration. If a self-employed person meets all the conditions, they generally do not have to file a tax return or insurance statements.
However, the flat-rate system isn’t beneficial for everyone. For example, entrepreneurs who take advantage of tax breaks for children or other deductions may save money under the standard tax system.
Do you use a personal car for business? Simply using a vehicle for business purposes no longer means you’re required to pay road tax.
According to the Road Tax Act, the tax primarily applies to selected trucks and trailers. Regular passenger cars are not subject to it.
Other obligations may include property tax or local fees. Whether these apply depends on the specific assets and the nature of the business.
A common risk is confusing the flat-rate expense allowance with the flat-rate tax. These are, however, two distinct methods of simplifying tax obligations.
Real-life example: A self-employed individual provides services to Czech customers and begins using paid advertising from a foreign company. Because their annual revenue does not exceed 2 million CZK, they assume they do not need to deal with VAT. However, they may be required to register as a VAT-registered entity.
Similar complications can be avoided by regularly monitoring your obligations. The attorneys at Dostupný advokát will help you assess your legal situation and related business obligations.
A sole proprietor’s tax obligations primarily include income tax and regular contributions to health and social insurance. Depending on turnover and the type of business, obligations related to VAT, road tax, or other levies may also arise. The amount of tax is influenced by whether you claim actual or flat-rate expenses, or opt into the flat-rate tax regime. The most important thing is to keep accurate records of your income, monitor statutory limits, and meet filing and payment deadlines.
If you are not required to file a tax return, you do not have to file one simply because you hold a business license. However, if you report a tax loss, you may become required to file one.
Yes. If you meet the requirements for a secondary self-employment activity, you may not be subject to the same minimum advance payments as you would be for your primary business.
Most self-employed individuals are not required to keep accounting records. As a rule, tax records or the relevant income records are sufficient when claiming a flat-rate expense deduction.
The tax office may assess late-payment interest. If a tax return is filed late, a penalty may also be imposed under the conditions specified by law.
If you are already in business, you can generally switch to the flat-rate tax system at the beginning of the calendar year. Special rules apply when starting a business.
Simply suspending business operations does not mean that all prior obligations are extinguished. You may still be required to file a tax return or pay additional tax for previous periods.
Not sure how to do your taxes correctly so you don’t get it wrong? We can help you navigate the law, whether it’s dealing with a specific tax situation, preparing for an audit by the tax authority or defending yourself in court.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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